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STATE OF NEW YORK 

DEPARTMENT OF FARMS AND MARKETS 

DIVISION OF FOODS AND MARKETS 



DR. EUGENE H. PORTER, Commissioner 

ALBANY 



PROVISIONS 

of 

Article III of the Agricultural Law 

Sees. 55 to 61 inclusive 

relating to 

MILK DEALERS' LICENSES 

J919 



ARTICLE 3 

\ f Dairy Products 

Section 55. Licensing of milk gathering stations where milk is 
bought. 

56. Power of commissioner to investigate. 

57. Granting and revoking licenses. 

58. Certiorari to review. 

59. Records to be kept. 

60. Right of review. 

61. Offenses. 

§ 55. Licensing of milk gathering stations where milk is bought. 

On and after September first, nineteen hundred and thirteen, no 

person, firm, association or corporation, shall buy milk or cream 

within the state from producers for the purpose of shipping the 

Regulation same to any city for consumption or for manufacture unless such 

in re pur- 
chase of business be regularly transacted at an office or station within the 

milk and ° ^ 

cream. state and unless such person, firm, association or corporation be 
duly licensed as provided in this and the ensuing sections of this 
article. Every such person, firm, association or corporation be- 

ucense. fore engaging or continuing in the business of buying milk or 
cream for the purposes aforesaid, shall, annually, on or before 
August first, file an application with the commissioner of agri- 

Appiieation culture for a license to transact such business. The application 

menta?" shall state the nature of the business, as hereinabove set forth, the 
full name of the person or corporation applying for the license, 
and, if the applicant be a firm or association, the full name of 
each member of such firm, or association, the city, town or village 
and street number at which the business is to be conducted, and 
such other facts as the commissioner of agriculture shall prescribe. 
The applicant shall further satisfy the commissioner of his or its 
character, financial responsibility and good faith in seeking to 

License tec. carry on such business. The commissioner shall thereupon issue 
to such applicant, on payment of ten dollars, a license entitling 
the applicant to conduct the business of buying milk and cream 
from producers for the purpose aforesaid at an office or station at 

a. of -- 

SEP A°:1919 



; .T- 






the place named in the application until the first day of Septem- Duration of 
ber next following; provided, however, that if the application be 
presented in the month of July, and if the applicant so elects, 
such license may be granted to begin on the first day of September 
next following and run for a term of one year. A license shall ^""ng f t r 
not be issued, however, to any applicant if during the year pre- ud^e. 
ceding the filing of the application a complaint from any pro- 
ducer and seller of milk or cream shall have been filed with the 
commissioner against such applicant for any of the grounds speci- 
fied in section fifty-seven hereof, and such complaint shall have 
been established as true and just to the satisfaction of the com- 
missioner after such complaint shall have been investigated by the 
commissioner in the manner provided by section fifty-six hereof. 
A license shall not be issued as provided in this section, on and 
after the taking effect of this section, unless the applicant for such Bond, 
license shall file with the application a good and sufficient surety 
bond, executed by a surety company, duly authorized to transact 
business in this state, in a sum not less than five thousand dollars, 
or shall be relieved from such requirement as provided herein. 
Such bond shall be approved as to its form and sufficiency by the 
commissioner of agriculture. 

Such applicant may in lieu of such bond deposit with the com- m no U 

' •••i'ii ot bond - 

missioner of agriculture money or securities in which the trustees 

of a savings bank may invest the moneys deposited therein, as 
provided in the banking law, in an amount equal to the sum 
secured by the bond required to be filed as herein provided. 

The bond required to be filed hereunder shall be given to the of bona. 
commissioner of agriculture in his official capacity and shall be 
conditioned for the faithful compliance by the licensee with the 
provisions of this chapter, as hereby amended, and for the pay- 
ment of all amounts due to persons who have sold milk or cream to DispogI 
such licensee, during the period that the license is in force. The *£» J n * e . 
money or securities deposited with the commissioner of agricul- curltles - 
ture, as above provided, shall constitute a separate fund and shall 
be held in trust for, and applied exclusively to, the payment of 
claims against the licensee making such deposit, arising from the 
sale of milk or cream to such licensee. 



Default In 
payment by 
licensee. 



Creditor 
may 

file verified 
claim or 
transcript 
of judg- 
ment 

with com- 
missioner. 

Time of 
Ming. 



Action by 
commis- 
sioner. 



Enforce- 
ment of 
judgment. 



Proof of 
claim in 
judgment. 



Applica- 
tion of 
proceeds 
of bond. 
First. 



Applica- 
tion of 
money aniS 
securities. 
First. 



Upon default by the licensee in the payment of any money due 
for the purchase of milk or cream, which payment is secured by a 
bond or the deposit of money or securities as hereinbefore pro- 
vided for, the creditor may file with the commissioner of agri- 
culture, upon a form prescribed by him, a verified statement of 
his claim. If such creditor shall have reduced such claim to judg- 
ment or shall thereafter and before the commencement of the 
action by the commissioner of agriculture, as hereinafter pro- 
vided for, reduce such claim to judgment, a transcript of such 
judgment shall also be filed with such commissioner. 

Such statements may be filed at any time during the period of 
the license for purchases made during such period and within 
ninety days from the termination of such period. 

After the expiration of ninety days from the termination of any 
license period the commissioner of agriculture shall, by proper ac- 
tion wherein all such creditors and any surety upon any bond 
given as hereinbefore provided for and the licensee shall be parties, 
proceed to determine the amount due each such creditor, and the 
judgment rendered in such action shall be enforced ratably for 
such creditors against the surety on the bond, if one there be, or 
against the moneys or securities deposited as hereinbefore pro- 
vided for. If any such creditor shall have reduced his claim to 
judgment such judgment shall be presumptive proof of the amount 
due such creditor in any action brought by the commissioner of 
agriculture as hereinbefore provided for. 

Every bond given pursuant to the provisions hereof shall be ap- 
plicable, in the first instance, to the payment of all claims arising 
during the license period for which such bond shall continue, and 
filed either during such period or within ninety days after the 
expiration thereof. If all such claims shall be paid the balance 
available upon such bond shall be devoted to the extinguishment 
ratably of claims arising during such license period, but for which 
statements shall not have been filed until after ninety days after 
the expiration of such period. 

All moneys and securities, deposited as herein provided for, 
shall be applicable, in the first instance, to the extinguishment of 
claims, properly filed, arising during the license period for which 
such moneys or securities were originally deposited and if, after 
the extinguishment of such claims, there shall be a surplus remain- 



ing such surplus shall be devoted to extinguishment of claims aris- econ ' 
ing during any preceding license period which were properly filed 
as hereinbefore provided, all claims for any one license period to 
be of a parity. Any surplus remaining after the extinguishment of surplus, 
of such prior claims shall be added to the moneys or securities then 
on deposit with the commissioner of agriculture or, if there be at 
that time on file with such commissioner a bond given pursuant 
to this section, or if there be then on deposit with such commis- 
sioner additional moneys or securities deposited as herein provided 
for, and if such bond or such moneys or securities, as the case may 
be, shall, in the opinion of the commissioner of agriculture, be 
sufficient, such surplus shall be returned to the licensee. 

A person or corporation licensed hereunder shall make a veri- f f at d e " ent 
fied statement of his or its disbursements during a period to be buIS -' ment8 - 
prescribed by the commissioner of agriculture, containing the 
names of the persons from whom such products were purchased, 
and the amount due to the vendors thereof. Such statement shall 
be submitted to the commissioner of agriculture when requested 
by him and shall be in the form prescribed by such commissioner. 
If it appears from such statement or other facts ascertained by £°™ment. 
the commissioner of agriculture, upon inspection or investigation 
of the books and papers of such licensee as authorized by section 
fifty-six of this chapter, that the security afforded to persons sell- 
ing milk and cream to such licensee by the bond executed or de- 
posit made by such licensee as herein provided does not adequately 
protect such vendors, the commissioner of agriculture may re- 
quire such licensee to give an additional bond or to deposit ad- £ o a ^ tl o ° r nal 
ditional money or securities, to be executed or deposited as above ^ uri ^ 
provided, in a sum to be determined by the commissioner, but not re( J u "' 6d - 
exceeding by more than twenty-five per centum the maximum 
amount paid out by such licensee to sellers of milk in any one 
month : Provided, however, that the maximum amount of the Maximum 

' ' . amount. 

bond or deposit required from any applicant under the provisions 

of this section shall be one hundred thousand dollars; and that 

any applicant filing a bond or depositing money or securities in 

such maximum amount shall be exempted from filing either the Exception. 

statements of milk purchased, or the statements of disbursements 

in this section provided for. 



6 



Excep- 
tion as 
to bonu. 



On com- 
plaint or 
by his 
own 
motion. 



Examina- 
tion of 
documents. 



AdJllSt- 

ment. 



Service of 
complaint. 



Time and 
place of 
serrlce. 



If the applicant for a license under this section he a person or a 
domestic corporation, the commissioner of agriculture may, not- 
withstanding the provisions of this section, if satisfied from an 
investigation of the financial condition of such person or domestic 
corporation that such person or corporation is solvent and pos- 
sessed of sufficient assets to reasonably assure compensation to 
probable creditors, by an order filed in the department of agri- 
culture, relieve such person or corporation from the provisions 
of this section requiring the filing of a bond. 

The term " station " or " milk gathering station," as used in 
this and the ensuing sections of this article, shall include an estab- 
lished office where the business of buying milk or cream as herein 
provided is carried on, with or without a place or premises in 
connection therewith for the physical handling of milk or cream. 
(As amended by chapter 651 of the Laws of 1915.) 

§ 56. Power of commissioner to investigate. The commissioner 
and his assistants shall have power to investigate upon the com- 
plaint of any interested person, or of his own motion, the record 
of any person, firm or corporation applying for or holding a li- 
cense, or any transaction involving the purchase by such applicant 
or licensee or attempted purchase of milk for shipment as pro- 
vided in section fifty-five; and for such purpose may examine the 
ledgers, books of account, memoranda or other documents of any 
such person, firm, association or corporation applying for or hold- 
ing a license and may take testimony therein under oath; but 
information relating to the general business of any such person, 
firm, association or corporation, disclosed by such investigation 
and not relating to the immediate purpose thereof shall be deemed 
of a confidential nature by the commissioner, his assistants, rep- 
resentatives and employees. When a complaint is filed with the 
commissioner, he shall attempt to secure an explanation or adjust- 
ment, and, failing this within ten days, he shall cause a copy of 
the complaint, together with a notice of the time and place for a 
hearing thereon, to b* served personally or by mail upon said ap- 
plicant or licensee. If served by mail, such complaint and notice 
shall be directed to the applicant or licensee at his place of busi- 
ness, with postago fully prepaid thereon. Such service shall be 
made at least seven days before the hearing. At the time and 
place appointed for such hearing, the commissioner or his as- 
sistants shall hear the parties to the complaint, shall have power 
to administer oaths and shall enter in the records of the office of 



the commissioner of agriculture a decision either dismissing such Hearing, 
complaint or specifying the facts which he deems established on 
such hearing. (As added by chapter 408 of the Laws of 1913.) 

§ 57. Granting and revoking licenses. The commissioner of 
agriculture may decline to grant a license or may revoke a license 
already granted when he is satisfied of the existence of the follow- 
ing cases or either of them : 

1. Where a money judgment has been secured by any milk agff™ t ent 
producer and has been entered against such applicant or licensee appllcnnt - 
and remains unsatisfied of record. 

2. Where there has been a failure to make prompt settlements intent to 

defraud 

to persons from whom he buys milk, with intent to defraud. vendor. 



3. Where there have been combinations to fix prices. 

4. W T here there has been a continual course of dealing; of such 



Combina- 
tions. 



nature as to satisfy the commissioner of the inability of the ap~ intent to 
plicant or licensee to properly conduct the business or of an in- customers. 
tent to deceive or defraud customers. 

5. Where there has been a continued and persistent failure to Failure 
keep records required by the commissioner or by law. (As added records 
by chapter 408 of the Laivs of 1913.) 

§ 58. Certiorari to review. The action of the commissioner of 
agriculture in refusing to grant a license, or in revoking a license 
granted under section fifty-five, shall be subject to review by writ 
of certiorari, and if such proceedings are begun to review the 
revocation of license, the license shall be deemed to be in full 
force and effect until the final determination of certiorari pro- 
ceedings and all appeals therefrom. (As amended by chapter 
651 of the Laws of 1915.) 

§ 59. Records to be kept. Every proprietor of a milk gathering 
station shall keep, in such form as the commissioner of agricul- 
ture may prescribe, a record of transactions of purchases of milk 
or cream by him and he shall, at least semi-monthly, deliver to somi- 
each person from whom he receives or purchases milk or cream, statements. 
and in the unit of measure used in computing the amount due 
therefor, an itemized statement of the several amounts or quan- 
tities of such milk or cream so received or purchased at such milk 
station from such person during the prior half month or, if state- 
ments are delivered more frequently than semi-monthly during 
that period of time which has elapsed since the delivery of such 
last prior statement. If the milk or cream is purchased or re- 



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000 895 716 2 

ceived on a butter fat basis, such statement shall include the per- 
centage, or average percentage of butter fat contained in said 
milk or cream as determined by tests periodical or otherwise. 
Every such proprietor of a milk gathering station shall post in a 
conspicuous place in such milk station, a schedule of the prices 
being paid for milk or cream including the premiums paid or de- 
ductions made, if any, for milk or cream containing milk fat 
either in excess or in lesser amount than the agreed standard, and 
shall keep a correct account of all the milk or cream daily received 
or purchased from each person at such milk station which account 
shall be open to inspection by said person. (As amended by 
chapter 651 of the Laws of 1915.) 
Dissatis- § 60. Eight to review. If either party to the transaction of 

fled party x •/ 

may apply purchase and sale between a milk producer or a milk seller and a 

for investi- A ■*■ 

gation. licensed buyer of milk shall be dissatisfied relative to any trans- 
action of purchase and sale of milk between a milk seller and a 
licensed buyer of milk, he may apply to the commissioner of 
agriculture, in writing, within sixty days after the delivery of 
such milk to the licensed buyer, for investigation. The commis- 
sioner of agriculture shall treat such application as a complaint, 
and shall cause a full investigation of the transaction complained 
of to be made either by himself or one of his assistants, in the 
manner provided by section fifty-seven. (As added by chapter 408 
of the Laws of 1913.) 

§ 61. Offenses. Any person who, being a buyer of milk for 
shipment for the purposes set forth in section fifty-five, whether 
such person be licensed or whether his business be transacted at a 
station or otherwise, shall (a) fail to make prompt payments for 
milk purchased, with intent to defraud, or (b) shall make any 
false or misleading statement or statements enumerated in sec- 
tions fifty-five to fifty-nine inclusive, with intent to deceive, or 
(c) enter into any combination to fix prices, or (d) not being 
licensed, shall conduct the business of buying milk for shipment 
as provided in section fifty-five, or (e) being licensed or otherwise, 
engages in such business without having a station or office there- 
for, or (f) fails to conform to any requirement of or violates any 
provision of sections fifty-five to fifty-nine, inclusive, with intent 
to deceive a seller of milk, shall be guilty of a misdemeanor. (As 
added by chapter 408 of the Laws of 1913.) 



MU- 

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